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Retirees Don't Have to Pay Taxes on These Kinds of Income
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Joint filers earning between $32,000 and $44,000 may pay taxes on up to half of their earnings, while those bringing in more than this amount could pay taxes on up to 85%. Be sure to double-check your state and local laws regarding these taxes, even though bond income isn't taxed at the federal level. While you won't have to pay federal taxes on any inheritance you receive, estates over a certain size may be subject to estate taxes.